Sessional Paper No.3 of 1974 on the Kenya Tea Development Authority (Tea Factory Project)

Abstract

The Kenya Tea Development Authority is a statutory body established by the Agriculture (Kenya Tea Development Authority) Order, 1964. The Order provides that Kenya Tea Development Authority will acquire, operate or establish or enter into agreement for the establishment of tea processing factories; it will promote, finance and control the development of tea grown by smallholders and subscribe for shares in any company incorporated in Kenya for the purpose of processing and marketing tea. In pursuance of this objective, Kenya Tea Development Authority with the aid of loans from the World Bank, Commonwealth Development Corporation and other lenders, has developed smallholder tea industry in the Republic's districts of Kiambu, Murang'a, Nyeri, Kirinyaga, Embu, Meru, Kisii, Kericho, Nandi, Kakamega and Kitale; and has established processing factories in nine of these districts. The Authority has now successfully negotiated with the International Bank for Reconstruction and Development for a loan of U.S. $10,400,000 (equivalent to K£3,714,287) for the Tea Factory Project. This loan constitutes part of the funds required for the Project. The balance will partly be covered by a loan from the Commonwealth Development Corporation (a guarantee for which a separate Sessional Paper has been prepared) and the rest from the Kenya Government.